Inseego (NasdaqGS:INSG) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Speaker0Hello, and welcome to Inseego's third quarter 2025 financial results conference call. Please note that today's event is being recorded. All participants today will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity for Q&A. To ask a question, please press star, then one on your telephon ...

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Core Insights - Akoustis filed for Chapter 11 bankruptcy in December 2024, following a legal judgment of approximately $59 million against it related to trade secret misappropriation and patent infringement [2][6] - The bankruptcy process has not gone as planned, with vendors demanding changes and some dropping out, indicating a loss of control for the company [1] - A portion of Akoustis' assets was sold to a subsidiary of SpaceX for $30.2 million, while the remaining assets are being liquidated [5][6] Company Overview - Akoustis is an RF BAW filter company that specializes in high-power, high-frequency, and ultra-wideband solutions for various markets, including Wi-Fi, 5G/6G infrastructure, automotive, defense, IoT, and Satcom [4] - The company operated a 125,000 square foot MEMS chip fabrication facility in Canandaigua, New York, which is one of the few independent U.S. BAW fabrication facilities [7] Bankruptcy Details - The filing date for Akoustis' Chapter 11 bankruptcy was December 2024 [6] - The company entered into a stalking horse asset purchase agreement with Gordon Brothers Commercial & Industrial, LLC for certain assets to support the sale process [8]

Summary of Conference Call Company Overview - The company has a global presence with design centers in the U.S. (Arizona, Minnesota), U.K., China, Taiwan, and a strong expertise in RF technology [1][2] - The company has a patent portfolio of over 285 patents [1] - First half of 2025 sales were $25.5 million, with a market valuation of approximately $50 million [1] Transition and Market Opportunity - The company is transitioning from a component-based provider to a complex wireless system solution provider, doubling its overall market opportunity from $1.1 billion in 2024 to $2.2 billion in 2025 [2][17] - Key growth platforms include the AirgainConnect Fleet 5G Vehicle Gateway and Lighthouse 5G Smart Network Repeater, with expectations for shipment ramps in 2026 [2][17] Financial Performance - Q1 closed at $12 million with an adjusted EBITDA loss of $1.2 million [14] - Q2 revenues increased slightly, with an EBITDA loss reduced to $0.4 million [15] - Guidance for Q3 is $14 million in revenue with a breakeven to positive EBITDA [15] - Gross margin improved from 38% two years ago to around 44% this year [15] - The breakeven point has been lowered to about $14 million quarterly, down from $60 million last year [16] Product Details AirgainConnect Fleet 5G Vehicle Gateway - An all-in-one 5G modem, Wi-Fi 6 router, and external antenna with eSIM capability [8][9] - Competitive advantages include high performance, quick installation, and reduced total cost of ownership [9][10] Lighthouse 5G Smart Network Repeater - Designed to address 5G coverage issues without requiring backhaul, allowing for rapid deployment [12][13] - Can leverage existing 4G infrastructure to propagate 5G coverage, significantly reducing installation costs and time [12][13][24] - The product is positioned as a cost-effective solution compared to traditional base stations and DAS systems [23][24] Management and Strategy - The leadership team has extensive experience in the semiconductor and telecommunications industries [4][5] - The company maintains a scalable asset-light model with all manufacturing outsourced to contract manufacturers [3] - Focus on sustainable long-term growth and innovation in wireless technology [4][16] Market Challenges and Future Outlook - The main growth constraints are the entrenched market dynamics, but the company believes in its differentiation and brand enhancement over time [17] - The company does not plan to enter the consumer product market, focusing instead on enterprise solutions [18] - Future growth is expected to be driven by existing profitable business supporting new product initiatives [28]

Core Points - Inseego Corp. will release its financial results for Q3 2025 on November 6, 2025, after market close [1] - The financial statements and earnings press release will be available on Inseego's website and filed on EDGAR [2] - A conference call to discuss the results and business outlook will take place on the same day at 5:00 p.m. Eastern Time [3] Company Overview - Inseego Corp. is a leading provider of cloud-managed wireless broadband connectivity solutions, focusing on 5G technology for various sectors [5] - The company offers a comprehensive hardware portfolio and a SaaS platform for device, network, and subscriber management [5] - Inseego has delivered over 10 generations of solutions, emphasizing speed, security, and reliability for businesses, government agencies, and educational institutions [5]

Group 1 - The emergence and rapid iteration of generative AI technologies are accelerating the integration of AI into daily life, while 5G technology is advancing towards the 5G-Advanced phase, providing faster transmission rates and lower latency, which supports digital transformation across various industries [1] - Qualcomm's Vice President, Li Jing, highlighted at the 2025 China Mobile Global Partner Conference that AI is creating epoch-making development opportunities, enhancing value beyond user experience, and accelerating implementation across industries [1][3] - The synergy between AI and connectivity technologies like 5G and 5G-A is expected to inject growth momentum into smart terminal innovation, as 5G-A offers low latency and high reliability, providing a solid foundation for AI applications [1] Group 2 - Qualcomm is focused on wireless communication and mobile computing technologies, continuously advancing 3G, 4G, 5G, and AI, while diversifying its business and expanding cooperation with Chinese industries [3] - At the conference, Qualcomm showcased flagship smartphones powered by the latest Snapdragon 8 Gen 2 platform, demonstrating strong AI capabilities that enable personalized smart experiences across applications [3] - Qualcomm has initiated the "AI Acceleration Program" with major Chinese partners to expand AI capabilities across more devices and explore various AI application scenarios, promoting large-scale implementation of intelligent technologies [5]

Partnership - AST SpaceMobile and Verizon Communications will partner [1] - The partnership aims to provide space-based cellphone service in the continental U_S [1]

Core Insights - Wi-Fi 7, officially launching in January 2024, promises significant improvements in speed, latency, and efficiency, addressing common issues like buffering and video call interruptions [2][4][11] Technical Definitions - Speed refers to the theoretical maximum data transfer rate under ideal conditions, often misaligned with real-world performance [3] - Bandwidth indicates the maximum capacity of a communication channel, akin to the number of lanes on a highway [3] - Throughput measures the actual data transmitted in real-world scenarios, affected by various factors like congestion and hardware limitations [3] Wi-Fi 7 Technical Advancements - Wi-Fi 7 can achieve theoretical speeds up to 46 Gbps, five times faster than Wi-Fi 6E's 9.6 Gbps [4][8] - It doubles the maximum channel width from 160 MHz in Wi-Fi 6E to 320 MHz, enhancing data transmission capacity [4][8] - The introduction of 4096-QAM modulation allows Wi-Fi 7 to transmit 12 bits per symbol, significantly increasing data density compared to Wi-Fi 6E's 10 bits [4][8] Real-World Implications - Wi-Fi 7's Multi-Link Operation (MLO) enables simultaneous use of multiple frequency bands, improving speed and reliability [5][9] - Enhanced resource allocation through Multi-RU allows for adaptive bandwidth distribution based on device needs, optimizing performance for high-demand applications [6][9] - The upgraded Target Wake Time (TWT) feature improves battery efficiency for IoT devices, reducing charging frequency [6][9] User Experience Enhancements - Faster speeds enable multiple users to stream, game, and video conference simultaneously without issues [9] - Reduced disconnections due to intelligent frequency management and multi-band operation [9] - Smarter resource management ensures all devices receive adequate bandwidth, enhancing overall network performance [9] Performance Testing Results - Real-world tests show Wi-Fi 7 achieving TCP throughput of 3.5 Gbps in a 4500 square foot home, with 2 Gbps maintained at common distances [10] - In enterprise settings, Wi-Fi 7 can sustain 1 Gbps throughput at 40 feet distance on the 6 GHz band, nearly doubling Wi-Fi 6E performance [10] - Consistent low latency and high spectral efficiency were confirmed in various testing environments, indicating robust performance under load [10] Impact on IT and Network Infrastructure - Wi-Fi 7 is designed for future-proofing networks, accommodating bandwidth-intensive applications like AR/VR and smart home devices [11][13] - It requires compatible endpoints and updated infrastructure to fully leverage its capabilities, particularly in the 6 GHz band [12][13] - Awareness of current Wi-Fi standards and their limitations is crucial for effective network planning and upgrades [12][13]

Group 1 - Ondas Holdings Inc. has appointed Karl Eze as Strategic Advisor for the United Kingdom to enhance its presence in the region [1] - The appointment aims to support technology and defense development initiatives, aligning with Ondas Capital's international strategy [1] - Karl Eze brings a wealth of military, financial, and entrepreneurial experience to accelerate the company's growth in the UK market [1]

Core Viewpoint - The recent news regarding AT&T's acquisition of spectrum does not pose a significant negative impact on SBA Communications Corporation (SBAC) [1] Group 1: AT&T and EchoStar Transaction - AT&T acquired spectrum from EchoStar for approximately $23 billion, which is about $7 billion more than EchoStar's original cost of around $16 billion [3][7] - EchoStar's market capitalization increased from approximately $8.5 billion to $16.2 billion following the transaction, reflecting a total enterprise value increase of about $7.7 billion [7] - AT&T plans to deploy the 3.45 GHz spectrum quickly, while the 600 MHz spectrum will experience a modest delay due to necessary equipment adjustments [6][10] Group 2: Implications for SBAC - The transaction is expected to enhance AT&T's fixed wireless home internet service, which could lead to increased demand for cell towers as more home internet connections transition to cellular networks [11][13] - SBAC's management has indicated that signed leases are in place, suggesting a stable revenue stream despite potential concerns about AT&T reducing new contracts [19][20] - The overall sentiment remains positive for SBAC, as the acquisition by AT&T is seen as a move that will not diminish the need for tower infrastructure [21][22]